Futures are up big pre-market, though there’s no guarantee those gains will stick. Lehman and Goldman seem to have dodged the bullet for another quarter, and both are up significantly premarket.

We’re looking for positive trading most of today, with some selling possible after the Fed announcement at 2:15. We’re selling small into strength today, and adding to directional positions as more selling likely unfolds through the remainder of the week.

But if all that sounds uncomfortably close to a weather report, that’s because we have about as much confidence in any directional predictions this week as most weatherpersons should have in their forecasts. The fundamentals of this market are horrible and the trend is down, but as we said on Sunday the ever-present possibility of government intervention makes strong opinions dangerous.

Look for resistance around 1320-1330 on the S&P, and at 44 on the Qs.

Last 5 posts by Condor Options

• Midweek Sméagol Reading - August 20th, 2008
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• August Monthly Review - August 17th, 2008
• They Have the Passports to Prove It - August 13th, 2008
• Sleepy Nasdaq - August 12th, 2008